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deathof bankruptee

my husband and i filed bankruptcy together. we are still bankrupt. he has died, can trustee take my insurence he left to me

Posted from: Nova Scotia

One Response to “deathof bankruptee”

A licensed trustee said...

I am sorry to hear of your spouses’ death – I hope it was not difficult for them.

Unfortunately, if you have not completed your bankruptcy prior to your spouses’ death then your trustee is correct, any insurance money you are supposed to receive may be seized and paid to your creditors.

Depending on how much money you are expecting, you should ask your trustee whether or not they would be willing to file a proposal to your creditors in order to annul your bankruptcy. The proposal would offer some (probably most) of the insurance money to your crediotrs, but it would allow you to keep a portion. The creditors will have to agree, but in my experience most will on comnpasionate grounds. At least this gives you something to discuss with your trustee before they simply take all of the money…